Bangkok, Anticipated buying demand from Indonesia
apparently kept Asian physical rice export prices steady to higher in Thailand
and Vietnam Wednesday, exporters and traders said.
Indonesia's Industry and Trade Minister, Rini Soewandi, confirmed
Wednesday that the government has decided to shelve a plan to temporarily ban
rice imports this year.
Rini said no import limitations will be imposed as the main crop domestic
harvest has already ended, and no further regulations are needed now.
"People are anticipating that Indonesia could come back in again to buy
rice," said a trader at a rice exporting company in Thailand.
Boosted by anticipated demand from Indonesia, Thai 25% broken rice was
offered higher Wednesday around $191 a metric ton, FOB, up from $188/ton
Monday and from $180-$181/ton last week.
Thai 100% B grade rice and 5% broken was offered steady at $210/ton and
$203-$205/ton, FOB, respectively.
As of June 27, Thailand had exported 3.20 million tons of rice, compared
with 3.16 million tons in the same period in the previous year.
However, president of the Rice Exporters Association of Thailand, Vichai
Sriprasert, said the current high prices of Thai rice could hurt the country's
rice exports this year, and shipments may total only 6 million to 6.4 million
tons, falling short of the government's target of 7.3 million tons.
Thai prices are markedly higher than those of Vietnamese and Indian rice,
exporters said.
In Vietnam, 5% broken rice grade was offered Wednesday around $183/ton,
FOB, while 25% was offered around $163/ton, FOB. Prices of both grades were
unchanged from earlier this week.
Rice supply in Vietnam is still ample, preventing any rise in prices, a
Vietnamese trader said.
In India, 25% broken rice was offered steady around $175/ton, FOB.